Inflation in Sao Tome and Principe reaches lowest level of last 10 years

24 September 2012

Inflation in Sao Tome and Principe is on a downward trajectory and reached 8 percent in April, 2012, which is the lowest level of the last 10 years on the archipelago, according to the mission of the International Monetary Fund (IMF) that travelled to the archipelago.

The IMF mission, which said that the Sao Tome government’s macroeconomic performance was positive, said that the government should continue to “manage strict budget execution,” in order to maintain the downward inflation trend.

Cited by Pan-African news agency Panapress, Ricardo Veloso, one of the members of the IMF team, said that the archipelago would, however, post weak economic growth in 2013 due to accumulated debts.

In his turn, the Sao Tome Minister for Finance and International Cooperation, Américo Ramos, said that budget execution in the first half of 2012 had been positive but added that it was necessary to “meet the same level of execution,” so that the country can, by the end of the year, achieve a primary deficit of 3.2 percent of Gross Domestic Product (GDP).

Payment of debts to oil and fuel company Nacional de Combustíveis e Óleo (ENCO) and water and electricity company, Emae, and by these companies to the state is one of the main recommendations of the IMF to be carried out by December. (macauhub)